Satisfactory performance in Q3 2025
Announcement no. 12/2025
“We’re pleased to present a third quarter profit of DKK 80m before tax, a slight improvement on our original profit guidance. The positive performance was driven by strong customer activity and positive momentum across several business areas. Costs were in line with our full-year guidance, and we noted with satisfaction that our customers are generally financially robust, as is reflected in a reversal of impairment charges for the quarter. We maintain our guidance for the rest of the year,” said Føroya Banki CEO Turið F. Arge.
Highlights of Føroya Banki’s interim report for Q3 2025
| Highlights and ratios | |||||||||
| DKKm | Q1-Q3 2025 | Q1-Q3 2024 | Index | Q3 2025 | Q2 2025 | Index | Q1 2025 | Q4 2024 | Q3 2024 |
| Net interest income | 237 | 269 | 88 | 77 | 84 | 91 | 76 | 78 | 87 |
| Net fee and commission income | 60 | 54 | 111 | 21 | 19 | 110 | 20 | 19 | 18 |
| Net insurance income | 56 | 46 | 122 | 14 | 27 | 53 | 16 | 10 | 20 |
| Other operating income (less reclassification) | 48 | 32 | 151 | 11 | 24 | 44 | 13 | 9 | 10 |
| Operating income | 402 | 401 | 100 | 123 | 154 | 80 | 125 | 117 | 135 |
| Operating costs | 210 | 202 | 104 | 73 | 68 | 107 | 69 | 72 | 69 |
| Profit before impairment charges | 192 | 200 | 96 | 50 | 86 | 58 | 56 | 46 | 66 |
| Impairment charges, net | -2 | 10 | -16 | -9 | 2 | -483 | 5 | -11 | -6 |
| Operating profit | 194 | 189 | 102 | 58 | 84 | 69 | 51 | 57 | 72 |
| Investment portfolio earnings | 77 | 106 | 73 | 22 | 30 | 73 | 25 | 31 | 48 |
| Profit before tax | 271 | 295 | 92 | 80 | 115 | 70 | 76 | 88 | 119 |
| Tax | 53 | 57 | 93 | 17 | 21 | 78 | 15 | 15 | 23 |
| Net profit | 218 | 238 | 91 | 64 | 93 | 68 | 61 | 72 | 96 |
| Loans and advances | 9.598 | 9.072 | 106 | 9.598 | 9.695 | 99 | 9.270 | 9.086 | 9.072 |
| Deposits and other debt | 10.803 | 9.354 | 115 | 10.803 | 10.383 | 104 | 10.299 | 10.003 | 9.354 |
| Mortgage credit | 2.789 | 2.579 | 108 | 2.789 | 2.909 | 96 | 2.906 | 2.741 | 2.579 |
| Equity | 1.945 | 2.004 | 97 | 1.945 | 1.881 | 103 | 1.788 | 2.076 | 2.004 |
| Total capital ratio, incl. MREL capital, % | 36,6 | 37,9 | 36,6 | 35,9 | 36,0 | 36,3 | 37,9 | ||
| CET 1 capital, % | 23,1 | 25,1 | 23,1 | 22,7 | 23,5 | 23,8 | 25,1 | ||
| ROE, % | 14,4 | 16,5 | 13,3 | 20,3 | 12,6 | 14,2 | 19,6 | ||
| Liquidity Coverage Ratio (LCR), % | 294,5 | 302,2 | 294,5 | 259,7 | 261,1 | 337,4 | 302,2 | ||
| Operating cost/income, % | 52 | 50 | 59 | 44 | 55 | 61 | 51 | ||
| Number of FTE, end of period | 202 | 206 | 98 | 202 | 199 | 101 | 204 | 207 | 206 |
Business developments
Overall, the performance for the period from Q3 2024 to Q3 2025 was characterised by business growth, reflected in a 6% increase in lending, a 15% increase in deposits and 8% mortgage lending growth. The increase in lending was generated by corporate customers and personal customers domiciled in the Faroe Islands. The increase in deposits stemmed from corporate customers and personal customers domiciled in the Faroe Islands and Greenland, respectively.
Capital ratios
At 30 September 2025, the Group’s CET 1 capital ratio was 23.1%, against 23.8% at 31 December 2024. The total capital ratio including MREL was 36.6% at 30 September 2025, against 36.3% at 31 December 2024. The reduction in the CET 1 capital ratio was mainly due to growth in risk-weighted assets due to the Bank’s loan portfolio having increased by approximately DKK 500m since the end of 2024.
The net profit of DKK 217.7m for the period Q1-Q3 2025 is not included in the calculation of capital ratios.
Guidance for 2025
On 28 January, Føroya Banki announced expectations of a net profit for 2025 in the DKK 210-240m range. Subsequently, on 15 July 2025, the Bank revised its net profit guidance upwards to a range of DKK 235-265m. The guidance is subject to uncertainty related to interest rate developments, adverse economic consequences of the geopolitical unrest and the risk of an intensified trade war.
Føroya Banki has banking activities in Greenland and the Faroe Islands and insurance activities in the Faroe Islands. Founded in the Faroe Islands more than a century ago, the Group has total assets of DKK 15.2bn and 202 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on Nasdaq Copenhagen.
Further details are available in the Q3 2025 interim report.
For further information, please call:
Rúna N. Rasmussen, Investor Relations, tel. (+298) 230 478